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Income Tax Return (ITR):

Income Tax Return (ITR) is the form in which assessee files information about his/her Income and tax thereon to Income Tax Department. The tax liability of a taxpayer is calculated based on his or her income. it is compulsory to file income tax returns if  income is more than the basic exemption limit. The income tax rate is pre-decided for taxpayers.

  • Income Tax Slab:
Income Tax Slab Tax Rates for FY 2020-21 (Applicable for All Individuals & HUF)
Rs 0.0 – Rs 2.5 Lakhs NIL
Rs 2.5 lakhs- Rs 3.00 Lakhs 5% (tax rebate u/s 87a is available)
Rs. 3.00 lakhs – Rs 5.00 Lakhs
Rs. 5.00 lakhs- Rs 7.5 Lakhs 10%
Rs 7.5 lakhs – Rs 10.00 Lakhs 15%
Rs 10.00 lakhs – Rs. 12.50 Lakhs 20%
Rs. 12.5 lakhs- Rs. 15.00 Lakhs 25%
> Rs. 15 Lakhs 30%
  • Income tax slab for Individual aged below 60 years & HUF
Income Tax Slab Tax Rates for Individual & HUF Below the Age Of 60 Years & NRIs
Up to Rs 2.5 lakhs NIL
Rs. 2.5 lakh -Rs. 5Lakhs 5%
Rs 5 .00 lakh – Rs 10 lakhs 20%
> Rs 10.00 lakh 30%

Kindly note that:

Income tax exemption limit is up to Rs.2,50,000 for Individuals , HUF below 60 years aged and NRIs for FY 2018-19. 

  • ITR Forms:

Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.

Sl. ITR Description Online Offline
1 ITR 1 For Individuals having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh Yes Yes
2 ITR 2 For Individuals and HUFs not carrying out business or profession under any proprietorship No Yes
3 ITR 3 For individuals and HUFs having income from a proprietary business or profession No Yes
4 ITR 4 For presumptive income from Business & Profession Yes Yes
5 ITR 5 For persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7 No Yes
6 ITR 6 For Companies other than companies claiming exemption under section 11 No Yes
7 ITR 7 For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) No Yes
  • Due date for Filing ITR:

The last date for filing the income tax return is generally on 31st July of the assessment year (AY).

But due to Covid-19 Pandemic, The Due date of income tax return filing for the financial year 2019-20 was extended multiple times and finally extended till January 10, 2021.

  • Belated ITR Filing:

Belated return: An ITR filed after the due date is called a belated return.

Belated Income Tax Returns can be filed anytime on or before 1 year from the end of the relevant Assessment Year (AY). When you file a belated return, you are not allowed to carry forward certain losses.

Example: you can file a belated return for FY 2019-20 by 31.03.2021, i.e., before the end of the assessment year (AY) 2020-21

  • Penalty for late filing of income tax return:

1. The maximum penalty is Rs. 10,000.

2. Rs 5,000 if tax return is filed after the deadline but on or before December 31 of the relevant assessment year

3. b) Rs 10,000 if tax return is filed after December 31 but before the end the relevant assessment year, i.e., before 31st

4. If you are a small taxpayer whose total income does not exceed Rs 5 lakh then the maximum fees you are liable to pay is Rs 1,000 if the ITR is filed any time after the expiry of the deadline (i.e. January 10, 2021) but before March 31, 2021.

5. If a belated return is filed after the income tax due date, the taxpayer would be liable to pay the tax along with Interest @ 1% per month (simple interest) under Section 234A.

  • Penal Provisions for Tax Evasion:

If the tax evaded exceeds Rs 25 lakh the punishment could be imprisonment of 6 months to 7 years, as per the website of the Income Tax Department.

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

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April 2024